Binh Duong leather factory to generate $1 million in monthly revenue

June 02, 2023 | 08:16
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The inauguration of Argentine leather factory "Serendipity Bros" took place on May 31 in Binh Duong province. The factory boasts a production capacity of 600,000 square feet, which translates to a monthly revenue generation of US$1 million.
Binh Duong leather factory to generate $1 million in monthly revenue
Inside Argentine leather factory "Serendipity Bros". Photo: Le Toan

At present, the facility has 15 Vietnamese employees, and plans are underway to increase the workforce to 60-70 individuals by the end of 2023.

Located in Lot 397, Map No. 9, Tan Phuoc Khanh ward, Tan Uyen city, Binh Duong province, the factory spans an area of 4,118 square metres and has received a total investment of $300,000.

Overseen by Argentine businessman Santiago Campanera, the enterprise "Serendipity Bros" was established in Vietnam on August 9, 2021. The establishment of the company became possible through the international expansion of its parent company, Donto S.A., based in Argentina.

Founded in 1995, Donto S.A. specialises in manufacturing leather covers for home and office upholstery, primarily for export to the US and Europe. Presently, the company produces over three million square feet of leather each month and holds international quality and environmental certifications.

Donto S.A. supplies raw materials to prominent international brands such as Zara, Clark's, Rieker, Clarice, Nine West, Rockport, Diechmann, Aldo, Ted Baker, Vagabond, Lacoste, and Superga/Kappa.

Donto S.A. initially established a commercial representation office in Vietnam in early 2017, gradually expanding its presence and reputation in the country's industry. Despite the challenges posed by the Covid-19 pandemic, the company decided to establish Serendipity Bros as a wholly Argentine-owned entity in Vietnam in 2021.

The establishment of a leather finishing factory in Vietnam through "Serendipity Bros" enables Donto S.A. to enhance its ability to meet the demands of Vietnamese customers, fulfill both large and small orders, and reduce delivery time, thus strengthening its export capacity from Argentina.

Currently, Serendipity Bros imports salted and semi-finished leather from Argentina to Vietnam, where the final products are processed and finished according to the specific requirements of each brand, adding value through a wholly Vietnamese workforce.

Since the establishment of the representative office in 2017, Donto S.A. has sold a total volume of 9,904,702 square feet of leather in Vietnam, amounting to approximately $15.7 million in value.

The production focus of "Serendipity Bros" revolves around supplying inputs for the manufacturing of leather shoes, handbags, accessories, and sofas in Vietnam, primarily for export to the American and European markets. Additionally, the company exports its products to countries such as Bangladesh, China, Indonesia, Hong Kong, India, and Cambodia.

Serendipity Bros intends to collaborate with several local companies, including Tavi Co., Ltd., Rieker Vietnam Ltd., Sao Vàng Co., Ltd., Hengseng Vietnam Co., Ltd., Leather Win Shoes Co., Ltd., Gia Dinh Group JSC., Richever, Stella Group, and Orion.

Growing Argentinian ties Growing Argentinian ties

In 2023, Argentina and Vietnam will celebrate the 50th anniversary of diplomatic relations. Twenty five years ago, the two countries opened their respective embassies in Buenos Aires and Hanoi. From that moment onwards, commercial cooperation has been one of the three pillars of the bilateral relationship, along with excellent political dialogue and technical cooperation.

Leather industry faces challenges to maintain growth Leather industry faces challenges to maintain growth

The Vietnam Leather, Footwear and Handbag Association (Lefaso) expects to face many challenges this year in its efforts to maintain growth in the industry, according to the company's chairman, Nguyen Duc Thuan. This is despite the sector overcoming many difficulties to achieve impressive export turnover in 2022.

By Hong Nhung

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